Network Marketing/MLM Business - Pros and Cons

Discussion in 'Network/Multi-level Marketing' started by Cally, Jul 14, 2005.

  1. Cally

    Cally New Member

    I'm planning to start a network marketing business. I would appreciate your feedback on pros and cons of a network marketing business.

  2. Vishal P. Rao

    Vishal P. Rao Administrator Staff Member

    Based on my experience with network marketing, here are what I consider it's general advantages/disadvantages:


    1) You are your own boss and you get to set your own working hours.

    2) Very minimal startup costs compared to starting a franchise/brick and mortar business.

    3) Established infrastructure/plan.

    4) Regular motivation in form of seminars/cassetes/success stories (depends on the company).

    5) Presence of a sponsor/mentor to guide you throughout.


    1) Certain companies may limit your creativity by putting some restrictions on advertising/marketing.

    2) Though you are your own boss, you may have to periodically attend seminars/meetings, wear business attire even if you may not like it.

    3) You may or may not like your sponsor's/company's overall attitude.

    4) You may have to compete with your peers in your area/region.

    5) You have to be an effective speaker.

    6) Some may get intimidated (those with low self esteem) by attending seminars/meetings.
  3. lavendersluv

    lavendersluv New Member

    Good points Vishal, I highly recommend you read Robert Kiyosaki's book on network marketing. Excellent book, everyone looking to get into this type of business should read this book.

    The Business School for People Who Like Helping People is the name of the book. good luck

  4. johnsonsa

    johnsonsa New Member

    There are thousands of programs out there for network marketing. Either selling products, recruiting people to your "downline", giving free presentations, you name it. Every program will work better for some people than others, it is a matter of what you feel comfortable with. Find the right one and the rewards are unbelievable. Money, time with your family, security. But there are some things I would be careful of:

    1) Substantial investment
    2) Companies that pay thousand dollar commissions. If they can afford to pay that, your selling something really expensive.
    3) Get rich quick, make a grand by tomorrow night, and other such nonsense.
    4) Real estate
    5) No work involved. (any legitimate business requires some work)

    Best of luck!
  5. coreyjroman

    coreyjroman Silver Member

    I highly recommend this forum member's(shun) post entitled "a good message" located in network marketing on this web site! It will inspire you. It is one of the most empowring and motivating network marketing messages I have ever read! Have a great day!
  6. coreyjroman

    coreyjroman Silver Member

    Forget the cons... the pros are;

    1. Flexible Scheduling

    2. More Reward for effort

    3. Zero abuse of power by managers and administrators

    4. Productive downline creation decreases workload(the bigger you get the more you make and the less work you have to do.)

    5. Generating a retirement income without buying into one

    6. Little or no stress

    7. Create the only true partnerships in business and make friends as well

    8. Possibly benefit from the services your mlm provides and save money while making money

    9. Gain a sense of pride and professionalism

    10. Give your back to your family something it may be lacking... YOU!

    These are the top ten reasons why I believe in MLM opportunities. I enjoy working in mlm so much... I don't have any cons.
  7. Dan

    Dan New Member

    Great comments Corey, I think the process of network marketing is rather simple in its components really.... Have a desire, work towards that desire in daily goals... Keep it simple and keep it real.
    and OH and locate a company that has great leadership. Its all about leaders creating leaders.
    I'm suprised you haven't listed the newest one that is certainly attracting attention... I'm with AGEL My url in the signature. I think your your expertise you may want to investigate this one.

  8. Corey Agel

    Corey Agel New Member

    I am also with Agel in Minnesota. Any suggestions on the best way to get people involved? Im struggling to build my downline.
  9. AndrewHealth

    AndrewHealth New Member

    Hello Cally

    There are almost too many to list, but some of the pros are:

    - low startup cost/financial risk
    - residual income
    - working with others to help bring them success
    - being able to work your business from anywhere (not just from home)
    - potential for time/financial freedom
    - being able to work the business a variety of ways (that's right. You don't HAVE to approach your friends & family)
    - distribute great products to thankful people

    Some of the negatives are:

    - frustration for new recruits who don't receive proper support from their upline
    - like any other business, there are good companies, and bad companies. If you're not careful, you could get caught up in a bad company.
    - may be hidden costs in companies
    - new distributors don't read policies and procedures. This CAN lead to problems down the road when an affiliate earns too much money

    Hope this helps. I'm always willing to talk 1-on-1 if you would like some more information.
    Your friend,
  10. Jesper Werenskjold

    Jesper Werenskjold New Member far im all pro MLM... havent got any negative experiences yet... think the key to get all the positive is to not to get overexcited and dreaming about becoming a millionaire the first month.... cause likely you woun't... but keeoing the motivation and being patient is very important... thats how I think of myself as succesfull in this business even tough I only get around 300$ a month per check...but it adds up like I said... My key advise is still to have a portfolio of good programs to get that nice residual income [​IMG]

    Jesper Werenskjold
  11. odidis

    odidis New Member


    Network marketing is a good and viable business
    option for anyone who has a goal.
    Network marketing offers more advantages than
    disadvantages if one has a motivational upline in
    a mlm comany that has the following qualities:

    1. A viable mlm company should be credible-products backed
    2. The mlm company has a physical headquarter-
    3. The mlm company's compensation plan
    is reasonable and paid as and when due.
    4. There is a track record of company and members' success
    6. The mlm has been around for more than five years
    7. The mlm company is continuously spreading to other countries
    8. Membership of the mlm company is international
    9. The company keeps its promises to members, e.g.
    motivational special awards etc.

    Read the full article, "How to build a viable mlm business" [Link removed. Please read terms of use - Admin]

  12. michport

    michport New Member

    Research the company, the compensation plan and the training provided. It should have a proven, step by step system that is easy to follow. With many MLMs, you're dependent on the productivity of your down-line, which can become frustrating. You may want to choose a company that rewards primarily YOUR efforts. If you can succeed, the benefits are worth it.

  13. CThompson

    CThompson New Member

    How is your network marketing company doing?
  14. forranran

    forranran New Member

    Hey guys just thought I would let you know what I personally have found out!!

    MLM is always more beneficial to the higher people, if you get in early your fine - if your late your not gonna get much. One of the biggest known MLM's is Mary Kay, no they have been around forever but normally MLM's do not last long term. IE - the whole better for the bigger guy.

    Network Marketing is different, the company that I am with now is NM and the pay is the same for everyone at those levels. They have a longer track record with proven success, my company has been around for over 20 yrs and has been listed in the Inc. 500 in the top 5 for the last 5 yrs, they are more reliable, and better products/items/whatever they are in.

    In straight talk -- MLM is only good for upper level, NM is good for every level and you know that they will be around longer.

    Now I am sure that there are some that are switched, but you have to research everything before you get involved.
  15. wanda

    wanda New Member

    My thoughts exactly!

    MLM is all about the people at the Top.

    From my experience, never again will I do MLM. With our first company Agel, it wasnt about the everyday type person, it was about promoting Randy Gage and Eric Worre. It was about collecting that $1000US and $120US a month autoship!

    If you were in the click sort of speaking and in the right line, then yes, you were probably ok. As for us, we were NOT! What happened, NO SUPPORT!

    Thank GOODNESS we found something else, more geared to the everyday person, No cost associated with joining, plus an added bonus Free Website. We now have the support and are supporting our Team 150%[​IMG]

    Yes there are costs involved but only if you choose so. Plus at a cost of $59 every 2 months for your Energy Drink supply, ( approx $1.00 a packet) if you cant afford that, then your not in the right business of owning a home business!

    Bob & Wanda
  16. agoodsaid

    agoodsaid New Member

    Hi Cally and all -

    Truthfully, that people find a need to define NWM amd MLM as two seperate critters is funny to me.

    But I guess it's human to want to put oneself apart from the 'negative press' ... whatever, it's nothing but a distraction getting caught up in the semantics of it.

    You've had some good points covered here ... some dead on, others colored more by the experiences of the individual.

    What is most important is that you become able to evaluate each company for yourself.

    There are 5 basic areas that I look at ... the first is company management experience and integrity.

    If we can't get a check mark next to this one, then there's really no reason to move forward. And MANY companies don't pass on this point alone.

    But how can you tell whether you've got #1 in place??

    You have to go to the contract that they have you sign .... learning to spot the 'gotchas' (unethical points) in Policies and Procedures (NOT Terms and Conditions) is a pain, but not all that hard.

    First thing to look at is how long is the actual document? How much legal-ese did they feel the need to put in there?

    I'll be happy to help you look at the P&P for any company you're considering and teach you how to find the things to beware of.

    There's a contact form on my site [​IMG]


    PS. Oh yeah and as far I I'm concerned, the biggest pro can also be the biggest con:

    --> You work for yourself.
  17. getagrip

    getagrip Gold Member

    The biggest pros are that you CAN make money and become financially independent with MLM's.


    It seems that most people who join MLM's end up not making it and quitting.

    Additionally, you have to "bug" your friends and family to join, which is a major pain in the neck. Also, the meetings you have to go to or invite friends to are less than desirable to attend - and the prices you have to pay to join are sometimes rediculous.
    Finally, the products are often over-priced...and not many people want to buy them EVEN if they were underpriced!

    In spite of all that, some people do make it with MLM's, but most don't. MLM's are definately NOT for me, however, although I am somewhat of a fan of Cognigen...
  18. malibumentor

    malibumentor New Member

    The truth is more people probably make full-time incomes promoting the direct sales income opportunities like | Liberty League International | Emerald Passport | Coastal Vacations | and while the "start-up" costs for these companies may be higher ( at least they are commonly perceived that way ) it takes no more effort to promote a plan where you earn $1000-25,000 per customer than it takes to promote an mlm where you earn a $5.oo residual per customer (who stays on autoship).

    The direct sales companies are set up not only to attract people who have some funds to start a serious home business with early retirement potential, but also to sort of screen out those who are not capable of building such a business. People who get reactive over investing $1500.oo in starting a business are not the people you want for any team.

    By this logic (mine, admittedly, and feel free to criticize me for it) its not the cost of getting the business going that should be a determining factor but whether the person you are recruiting "sees" the potential or not. Often, and I have encountered this many times, a person will call a program a scam but the real reason is they don't have the money to do it, nor sufficient desire to go out and get the money to get started.

    Thats really the rub. I have little interest in signing people up pfor programs which are practically free to get involved with... because I know the individual has little incentive to turn their stated desire ("yeah, I'm totally serious") into real success.

    Excuses often ensue as to why the $50.oo recruit is not doing the business. Whatever.

    Why should I put my heart and soul into mentoring individuals who don't have the mindset that starting and running a business takes money? The whole big illusion with a lot of the MLM companies is that the new distributor has a good chance of bootstartpping him or herself from broke to millionaire in 2 years with "THE RIGHT COMPANY OR TEAM!"

    People who are worthy of success will show merit in any situation, however, with the direct sales model it is much easier to spend valuable time only dealing with and mentoring those who are truly serious about building a business and back that up with an investment of time, money, and energy.

    Lets have no illusions about what the real product of the MLM industry is: its the dream of easy big money for people with little education and no history of success in business. The vitamins, tonics, magnets, gas pills or whatever are the products that legitimize the industry, no doubt. And its great if you stand proudly behind the product you promote. But the real money is made by recruiting business builders who have been sold on the same dream we bought. Don't forget it.

    For this and other reasons I have chosen to primarily market the intangible products of education and marketing tools and the opportunities for users of these to make money as resellers themselves. "Webducation" is said to be the next megatrend, and
    among the hugriest market for it is the legions who are failing with MLM. They need it to succeed.
  19. lickhau

    lickhau New Member

    1) Affordable
    2) Own the business
    3) Great Passive income
    4) Know lots of people and business models

    1) High failure rate
    2) Have to learn a lot
    3) Work on your own

  20. betteryourself

    betteryourself New Member

    I think one of the most important things to keep in mind when weighing pros and cons of an mlm/network marketing venture is that you should way them against the pros and cons of starting a different type of business, not getting a job somewhere.

    By the time you are seriously looking at network marketing, you should be ready to be a business owner. Starting any business costs money and takes time, has a high failure rate, requires you to motivate yourself.

    Look at network marketing as more of a franchise opportunity, sort of like a cheaper version of opening a McDonald's. McDonald's has new store training courses just as most mlms have training calls. You have to advertise for your particular location for McDonald's, just as you will have to generate leads for your mlm.

    In my mind, thr pros and cons go something like this:

    pros: less expensive to start, a little less time consuming, can make a very good living (several hundred thousand a year in extremely good cases)

    cons: you will never be able to sell your mlm position to another person, some people will give you trouble because they think mlm is all a joke (but it isnt [​IMG], you generally don't have large supplies of physical goods on hand or other employees so you miss out on many tax benefits and economic development incentives

    franchise/other small business
    pros: a successful; business can be sold for hundreds of thousands or millions of dollars, people accept physical goods more than mlm, may be entitled to tax or other incentives from economic development offices, can get filthy rich (no Bill Gateses or Warren Buffets made their fortunes from mlm)

    cons: takes way more time to start up, way more money to start up, way more risk involved, and way more legal liability if anything goes wrong.

    I also agree with malibumentor in that you don't want people who are afraid to make a financial commitment on your team. They have no incentive to kick it into high gear. You want people to be dedicated, hungry, and serious so you don't waste your time and/or money and your wealth grows.

    I hope I helped to shed maybe a slightly different light on the matter [​IMG]

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